The National Union of Local Government Employees (NULGE) has argued that the 744 local government councils are in better stead to collect the Value Added Tax and not the Federal Inland Revenue Service or state governments.
The NULGE President, Akeem Olatunji, who advanced the argument, said VAT collection would impact the communities and people more positively if collected by the third tier of government.
Olatunji pointedly said that VAT collection should be the responsibility of the local councils “as the companies and consumers reside within the districts.”
It would be recalled that Justice Stephen Pam of the Federal High Court in Port Harcourt, the Rivers State, had on August 10, ruled that the Rivers State government, rather than the FIRS, should be collecting VAT and Personal Income Tax in the State.
Last Monday, the court also dismissed the FIRS application for a stay of execution, noting that the earlier order remained valid until set aside by a higher court of competent jurisdiction.
But responding to questions on the VAT controversy, Olatunji said: “We support the collection by the LGs since both companies and consumers reside within the local areas, for positive impact directly on the people and communities.”